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FXTM: Gold 'Remains A Battleground For Bulls And Bears'

Kitco News

For now, the gold market is a “battleground” between the bulls and bears, says Lukman Otunuga, research analyst at FXTM. The analyst says that a firmer U.S. dollar, coupled with expectations of a rate hike by the Federal Reserve in December, may be slightly obstructing gold’s recovery, even though spot metal was up $2.90 to $1,277.80 an ounce as of 9:23 a.m. EST. “This yellow metal remains a battleground for bulls and bears and as such, is likely to translate into prices trading in a wide range,” Otunuga says. “While bulls may find support from political risk and geopolitical tensions, bears are poised to be inspired by expectations of higher U.S. interest rates and a stabilizing dollar.” In the short term, technical-chart price action could dictate direction. “From a technical standpoint, previous support around $1,280 has the ability to transform into a dynamic resistance that triggers a decline back towards $1,267,” the analyst says. “Alternatively, a breakout above $1,280 could open a path towards $1,289 and $1,300, respectively.”

By Allen Sykora of Kitco News; asykora@kitco.com

 

BBH Outlines Three Key Political Issues For Investors

Monday November 13, 2017 09:30

Brown Brothers Harriman says three political issues may end up shaping the general investment climate this week. “The most important is U.S. tax reform,” BBH says. “Optimists still think a vote by both houses can be held by the middle of next month, ahead of the winter recess. We are skeptical, and the point we have made that is worth repeating is that, like health-care reform, the key debate is not between the two main parties, but within the Republican Party. Despite months of leaders of both houses working with the Trump administration, the bills are dramatically different on several key issues.” Meanwhile, in Europe,negotiations over the U.K.'s exit from the European Union remains in the forefront, BBH says. To complicate matters, media reports say a significant number of Tory members of Parliament are willing to sign a letter of no confidence against U.K. Prime Minister Theresa May, BBH adds. BBH also points to apparent progress in formation of the next German government, with reports that Prime Minister Angela Merkel may soon concede the coveted finance ministry portfolio to a new coalition partner. “However, Merkel may strip the international (e.g., Europe) responsibilities from it and transfer them to the economic ministry,” BBH says. “The finance minister's remit would cover the domestic economy. The economic minister would attend the Eurogroup and G7 meetings, for example. Such considerations may be important as investors attempt to assess the policy implications of the new coalition government.”

By Allen Sykora of Kitco News; asykora@kitco.com

 

Walsh’s Lusk: Gold Caught Between 100-, 200-Day Averages

Monday November 13, 2017 08:53

Gold begins this week between a couple of key long-term moving averages, says Sean Lusk, director of commercial hedging with Walsh Trading. Shortly before 8:30 a.m. EST, Comex December gold was up $3.20 to $1,277.40 an ounce. “Gold finished [last] week between the 200-day moving average at $1,263.80 and the 100-day at $1.279.80,” Lusk says. Breaks through key technical-chart levels often accelerate buying or selling. Lusk describes the metal as range-bound between roughly $1,265 and $1,285.

By Allen Sykora of Kitco News; asykora@kitco.com

MKS: Gold Needs Catalyst To Return To $1,300/Oz

Monday November 13, 2017 08:53

A number of factors are supportive for gold but the metal may have a hard time making a run at the $1,300-an-ounce level without a major news catalyst, says Sam Laughlin, senior precious-metals trader with MKS (Switzerland) S.A. The metal got a mild bid overnight on Chinese buying interest, as the onshore gold premium moved above $10 in early Shanghai trade, he says. “Middle Eastern tensions, U.S. tax reform and U.S.-North Korean relations remain present as upside shocks to the precious complex; however, in lieu of major developments, it is difficult to see gold finding the support necessary for a move back toward $1,300 over the near term,” he says.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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